Wild Oats Markets in talks with lenders for a new credit facility

By Sara Rosenberg

New York, Nov. 13 - Wild Oats Markets Inc. is currently in discussions with lending institutions about a new credit facility of $100 million to $125 million, according to a filing with the Securities and Exchange Commission. The new facility would replace the company's existing loan that matures in August 2003.

The current facility consists of an $86.2 million revolver and a $38.8 million term loan. At Sept. 28, there was $59.5 million outstanding under the revolver and $31.3 million outstanding under the term loan. Interest on the facility is Libor plus 475 basis points and the rates increase by 50 basis points on Jan. 1, 2003.

"If we are not successful in negotiating a new credit facility prior to the August 1, 2003 maturity date of the existing credit facility, our liquidity and ability to fund operations will be negatively impacted, and we may not have sufficient funds to repay all outstanding indebtedness," the filing said. "Although no assurances can be given, we expect that we will be successful in securing a new credit facility prior to August 1, 2003."

Wild Oats Markets is a Boulder, Colo. natural foods supermarket chain.

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